Bill
S 2045
Creates a MA income tax deduction equal to 50% of net tuition paid to public colleges by the taxpayer or dependent, lowering tax liability for in-state tuition payers.
Status / procedural notes
- Sponsor (bill text): Sen. Michael O. Moore (Second Worcester).
- Filed on Senate docket: 1/8/2025. Introduced in the Senate: 6/12/2025. Read twice and referred to the Committee on Finance; a committee hearing is scheduled for 09/09/2025 (10:00 AM–1:00 PM, Gardner Auditorium).
- The bill text appears in the Massachusetts General Court format and amends state income tax law (chapter 62). Some ancillary records attached to the provided materials list other referrals (e.g., “REFERRED TO HEALTH,” “Revenue”) and an alternative list of sponsors; these appear inconsistent with the primary bill document. This summary treats the official bill text shown on the docket as authoritative.
Purpose and intent
- To create a state income tax deduction for a portion of college tuition paid to Massachusetts public higher‑education institutions, with the stated intent of reducing the after‑tax cost of attending public colleges and universities.
Key provisions
- Adds a new clause (designated clause (21)) to subsection (a) of part B of section 3 of chapter 62 (Massachusetts income tax law).
- Authorizes a deduction equal to 50% of the cost of tuition payments made by the taxpayer to a public institution of higher education (as defined by section 5 of chapter 15A) for enrollment of the taxpayer or the taxpayer’s dependent.
- The deductible amount is calculated net of scholarships, grants, or other financial aid received (i.e., tuition minus aid).
- Prohibits claiming this deduction if the taxpayer claims the deduction referenced in existing subparagraph (11) of the same statutory subsection (preventing duplicate deductions under the two provisions).
Who is affected
- Massachusetts taxpayers who make tuition payments to in‑state public higher education institutions (community colleges, state universities, UMass system and other entities defined in ch.15A).
- Parents or guardians who pay tuition on behalf of dependents may claim the deduction (so long as they are the taxpayers who made the payments).
- Students or households that rely primarily on scholarships/grants will have their deduction reduced accordingly.
- State fiscal authorities — the deduction will reduce individual income tax revenue relative to current law (no fiscal estimate is provided in the bill text).
Practical effects and considerations
- Lowers taxable income for qualifying taxpayers by 50% of net tuition (reducing tax liability for those with Massachusetts income tax obligations). It is a deduction (not a refundable credit), so the benefit depends on the taxpayer’s marginal tax rate and whether they have taxable income.
- Likely to confer larger nominal benefits to higher‑income taxpayers who pay more tuition and have higher marginal rates; policy effects on enrollment, affordability, and state revenue would depend on program design and uptake.
- Implementation: taxpayers would claim the deduction on their Massachusetts income tax return in the tax year tuition was paid. The bill text does not specify an effective date beyond the statutory amendment, nor includes a fiscal note.
Related items
- Related/companion measures and prior session references are listed on the docket (e.g., HR 4462, SD 123, S 5177). Any fiscal impact statements or committee reports would appear later in the legislative process.
Compiled from official sources — confirm details with the bill’s official record.
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